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Consultant recommends 0.2 percent local income tax for new county jail

By Lucas González

Posted June 24, 2024

The Monroe County Jail. (Seth Tackett, WFIU/WTIU)

Monroe County’s financial consultant says officials should raise a local income tax to help pay for a new county jail.

At a meeting last Friday, a representative with Financial Services Group (FSG) advised raising the tax from the current 0.01 percent to 0.2 percent. The tax was enacted this year and lasts for 25 years.

The tax is expected to generate nearly $8.5 million in revenues annually. This would result in a construction budget of nearly $86 million, according to FSG.

Data from FSG show the budget could be closer to $211 million if the county combines a 0.2-percent local income tax with its share of an economic development tax passed by the Bloomington City Council in 2022.

DLZ, the firm that will design the jail, estimates the project will cost between $142 million and $152 million. That’s for a co-located facility, which would include space for courts and other services.

But county council members say co-location may not happen immediately.

“We don’t necessarily have good, solid numbers on the costs of these projects, and so having a fully co-located facility may not be feasible,” councilor Geoff McKim said at the meeting. “It certainly may not be feasible on day one.”

Council member Cheryl Munson discussed the possibility of “phasing” construction or building the jail first, and other facilities later.

FSG says it would be better positioned to advise on this once the county has a better idea of what the different phases might entail.

In the meantime, the county still has not determined where a new jail will be built. The commissioners are now considering a privately owned piece of land northwest of Bloomington as an option after deciding against county-owned land on the city’s southwest side.

Another consultant on the project, RQAW, recently completed a feasibility study suggesting the new jail should have 450 to 500 beds. The commissioners recently said the county council and sheriff must decide the bed count, despite those officials' previous understanding that the commissioners would make this decision.

This has led to friction between the commissioners and the council, which is now considering reclaiming funds that have gone toward consultants the commissioners hired for the project.

If the recommended local income tax is enacted, up to 20 percent of it, or about $1.6 million, may be used for the jail’s operational costs.

As the county’s fiscal body, the county council must decide whether to approve the tax.